Given their position in the middle of the supply chain, roasters thrive off building partnerships. Whether they’re with producers, establishing relationships to source high-quality coffee, or with cafés, supplying wholesale coffee and offering ongoing support, partnerships are essential to finding success in a competitive marketplace.
And the coffee industry has never been more saturated and dynamic. Dominated by multinationals and large chains, specialty roasters strive to differentiate and position themselves as the higher-quality alternative. However, with an estimated 62% of specialty coffee shops closing in their first five years of business, this is challenging, to say the least.
In recent years, roasters have increasingly relied on collaboration to navigate these hurdles. While some partnerships start as one-time product crossovers, others evolve into long-term relationships that allow roasters to align their focus on craft and quality with other brands in and out of the coffee industry.
Many roasters value a combination of both. The ultimate goal, however, is to develop short-term relationships into mutually beneficial, long-term partnerships that drive true innovation and add value to specialty coffee.
To learn more, I spoke to several people at Counter Culture Coffee, a pioneering specialty coffee roaster in North Carolina, US, about how the company invests in several of its supply chain partnerships.
You may also like our article on understanding coffee shop supplier partnerships.
Why partnerships with producers are key
Roasters sit in the middle of the coffee supply chain, placing them between the production and consumption ends. Cultivating successful partnerships on both sides is essential for their business models, acting as the bridge between farmers and consumers.
One of the most crucial relationships is undoubtedly with producers. Founded on the principles of direct trade and ethical sourcing practices, specialty coffee set out to transform how roasters traded with farmers for the better.
The idea was to pay above-market prices for exceptional coffee. Producers could reinvest in their farms, meaning roasters have continuous access to high-quality lots that meet growing consumer demand. When done right, everyone benefits.
Nelson Camilo Melo Maya is a smallholder producer and a representative of the Association of Organic Producers of Cauca in Colombia. The association has supplied coffee to Counter Culture for over 17 years, underscoring the importance of long-term working relationships.
“To create a truly beneficial partnership, you have to align on the same purposes: Transparency, quality, fair prices, and long-term two-way communication,” he says. “From there, you build mutual trust that allows you to grow together.”
Over time, renewed commitments to buying coffee and paying fair prices reassure producers that roasters will invest in building mutually beneficial partnerships. With commitments fulfilled, producers have the financial capacity to invest in their farms, safeguarding both quality and supply.
“The benefits are immense. Long-term mutual interest means better financial returns, which improves both coffee quality and producers’ quality of life,” Nelson adds. “It’s important that producers grow in the market to differentiate themselves and promote their coffees.”
The benefits of long-term producer relationships
Much of the industry’s focus is on establishing ongoing partnerships between producers and roasters, which is otherwise known as “relationship coffee.” These partnerships are fundamental to the values of specialty coffee.
“Long-term partnerships are built with suppliers you work with year after year. Although specifics like pricing, quality specifications, or the type of lots you purchase may evolve, a long-term partnership implies consistency and an ongoing commitment over time,” says Katie Carguilo, the Coffee Manager at Counter Culture Coffee, which recently celebrated its 30th anniversary.
“This can lead to higher-quality coffee, better pricing stability, and stronger alignment on shared values, like sustainability,” she adds.
Other types of working relationships with producers can also have a positive impact. For example, there are times when short-term partnerships can work for both parties.
“Short-term partnerships usually involve purchasing coffee on a one-time basis to meet immediate business needs,” Katie says. “These include spot purchases, where roasters buy coffee from an importer’s available stock or pre-contracted purchases that fit their budget and quality requirements.
“Roasters can meet immediate needs or take advantage of unique offerings in the market, evaluating if a specific coffee is a good fit for their offerings.”
Roasters aren’t the only parties that benefit from spot purchasing, however. Producers can quickly sell their coffee at the current market price when there is immediate demand, providing greater flexibility and allowing them to connect with potential long-term buyers.
What other relationships do roasters need to invest in?
At the other end of the supply chain, wholesale partnerships are arguably the most important for roasters. Supplying whole bean coffee and other products to cafés, bakeries, hotels, restaurants, and other hospitality venues drives significant revenue for roasters and expands their consumer reach.
As with producers, roasters need to ensure their brand values and ethos align with those of their wholesale partners. By sharing a commitment to maintaining coffee quality, customer service, and sustainability, roasters feel assured that their coffee is in safe hands, solidifying their reputation.
One of the most effective ways to safeguard brand and product integrity is to partner with companies that adhere to the same high standards, both in and out of coffee.
Jael Skeffington is the co-founder and CEO of the artisanal brand French Broad Chocolates, which first started its partnership with Counter Culture Coffee 17 years ago.
“Our relationship with Counter Culture began in 2008 when we first opened our Chocolate Lounge and served French press there,” she says. “Over the years, we explored other roasters but ultimately returned to Counter Culture. We want to use coffee that matches the quality and taste of our chocolates.”
Beyond quality and flavour, roasters need to ensure their brand values align with wholesale clients. Rather than being swayed by bold advertising claims, coffee consumers gravitate towards authenticity and genuine craft. A recent Forbes survey found that 90% of respondents valued authenticity as the most important factor in deciding which brands to support, signalling the need to offer more than just a transactional relationship.
“Additionally, our values of sustainability and responsible sourcing align closely. Like Counter Culture Coffee, we want to build lasting, meaningful partnerships with growers and producers worldwide,” Jael adds. “We’re inspired by, and strive to meet, the shared level of transparency and mutual support.”
More than coffee: How roasters support wholesale clients
On top of selling coffee to wholesalers, roasters can offer other types of support. These vary from barista training to recipe development to equipment loaning and servicing – diversifying roasters’ revenue streams further.
“Counter Culture Coffee offers us technical, sales, and branding support,” Jael says. “By maintaining honest and transparent communication and investing in each other’s success, we have strengthened our working relationship.”
Even with preventative and active maintenance, failures and troubleshooting issues with espresso machines and grinders are sometimes unavoidable. Wholesale clients, who may have little coffee experience, can rely on the expertise of partner roasters to resolve these problems, saving technician fees and service delays.
In addition to this support, wholesale clients can leverage roasters’ knowledge to develop their menus, tapping into new beverage trends and changing consumer demand.
“We have been a Counter Culture Coffee wholesale client since our inception, which dates back to early 2010,” says Stephen Fedorchak, the co-founder and owner of Northside Social café group. “The shop that preceded us in our Arlington, Virginia location was a Counter Culture client, and it was an easy choice to continue working with such a well-established roaster.
“The team’s strategic perspective, industry expertise, and exposure to multiple clients allow us to gain visibility into emerging trends and best practices, which supports our business planning and operations,” he adds.
Roasters also reap the rewards. Two-way communication with wholesale partners allows them to create a feedback loop about coffee offerings, roast profile development, barista training, and equipment maintenance, strengthening the working relationship.
Turning short-term projects into long-lasting relationships
One-off collaborations and short-term partnerships often serve as springboards for innovation and creativity in specialty coffee. Brands collaborate with musicians, professional athletes, influencers, and luxury car manufacturers to showcase intentionality and exclusivity, driving consumer interest.
“Short-term projects, as I would call them, are fun because they help get our brand into spaces that aren’t necessarily food & beverage focused,” says James DiGioia, the national sales manager at Counter Culture Coffee.
In some instances, roasters even collaborate with competitors. Counter Culture released the limited-edition Gemini blend in partnership with South Korea’s Fritz Coffee Company, combining their shared expertise to develop a product they couldn’t achieve alone.
“Our goal is usually to develop projects into long-term partnerships to support each other, become better at what we do, refine our vision, and adjust to new trends,” James tells me. “The more closely we work with people over long periods, the better we can understand what’s important to them and how we can fulfil their needs – and they do the same with us.”
As is true in any industry, establishing a network of cross-sector peers and collaborators can be an effective way to leverage expertise, grow in unchartered markets, and develop new products for customers.
“It’s a useful way to introduce coffees and your brand to people who might not be aware or knowledgable about specialty coffee,” James says, underscoring how roasters can expand their reach across different markets.
Supporting other businesses
While roasters certainly benefit from building short-term partnerships into long-term ones, they can also bolster the growth of other businesses and industries.
“Our partnership with Counter Culture has led to tangible business growth across our two locations over the last 14 years,” Stephen says. “Their brand is an integral part of our identity, so we serve their products with pride.
“We understand and appreciate the care that goes into sourcing, roasting, delivery, and merchandising,” he adds. “Both parties need to maximise the potential of the relationship.”
Ultimately, investing in long-term partnerships within the supply chain secures a more stable future for the coffee industry – which is becoming increasingly vital as climate change exacerbates dwindling global stockpiles.
“We must work together on generating a new concept of quality, not only thinking about the final results in the cup but the integral quality of the product: Producers’ livelihoods, soil health, and the environment at origin,” Nelson concludes. “This becomes more urgent and demanding as the climate crisis worsens.”
Both short and long-term relationships are vital to roasters’ success. The key to establishing them is to find a common, shared goal that drives mutual interest and innovation.
Not all partnerships will, or need to, result in long-term collaboration. But for many roasters, the end goal is to work with like-minded businesses in and out of the coffee industry that add value to their supply chains.
Enjoyed this? Then read our article on why collaborations show there’s less appetite for competition between roasters.
Photo credits: Counter Culture Coffee
Perfect Daily Grind
Please note: Counter Culture Coffee is a sponsor of Perfect Daily Grind.
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